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2017 | OriginalPaper | Chapter

7. Convergence of Tax Shocks and Macroeconomic Performance in the Enlarged European Union

Author : Athanasios Anastasiou

Published in: Taxation in Crisis

Publisher: Springer International Publishing

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Abstract

While the question of whether or not there are differences across countries in the effects of fiscal policy on several macroeconomic outcomes, much less is known about the linkages between the convergence of tax shocks either in aggregated level or in disaggregated level (direct and indirect) and several macroeconomic factors such as trade openness, convergence of economic policies, and convergence of labor-market rigidities in the enlarged EU27. Our results provide evidence of heterogeneities between the pattern responses of output growth and inflation to total, direct, and indirect shocks. Overall, our results have important policy implications as they provide insights into which factor could reduce tax policy asymmetries in Europe—something essential for the successful functioning of the internal market.

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Title: Convergence of Tax Shocks and Macroeconomic Performance in the Enlarged European Union
Author: Athanasios Anastasiou
Publisher: Springer International Publishing
Book: Taxation in Crisis
Print ISBN: 978-3-319-65309-9

Electronic ISBN: 978-3-319-65310-5

Copyright Year: 2017
DOI: https://doi.org/10.1007/978-3-319-65310-5_7